The return of the 0 APR balance transfer

Those with great credit scores present a bit of a dilemma to credit card issuers. On the one hand, they’re pose much less of a risk than your average Joe, and are statistically unlikely to default. On the other hand, however, they’re usually very well organised, and because they often clear their balance every month, they don’t generate much profit for the card providers.

That probably explains why 0% APR balance transfer offers have been drying up a little in recent years, but the trend looks set to reverse again, according to SmartMoney.com

However, the terms of balance transfers will probably start to change. More people will pay a reduced introductory rate, rather than 0% APR, or perhaps a higher annual fee to help increase profits. On the positive side, other incentives will become more prominent, such as longer introductory rates and grace periods.